Hoverjet Limited entered into a memorandum of understanding to acquire Huasheng International Property Development (Shanghai) Co., Ltd. from Deson Development International Holdings Ltd. (SEHK:262) on May 18, 2016. Under the terms, Hoverjet will pay CNY 56.9 million in cash and the allotment and issuance of new ordinary shares representing 30% of the enlarged of Hoverjet and the assumption of outstanding taxes payable by Huasheng International for tax periods ending on the completion date for an amount up to CNY 25 million. An earnest sum of HKD 5 million as good faith money will be paid by Hoverjet to Deson within seven days after the signing of the memorandum of understanding. Hoverjet Limited entered into an agreement to acquire Huasheng International Property Development (Shanghai) Co., Ltd. from Deson Development International Holdings Ltd. (SEHK:262) for CNY 82.1 million on September 30, 2016. The consideration is a sum equivalent to the Deposit less the Earnest Sum has been paid by a cashier’s order drawn on a licensed bank in Hong Kong and made payable to DVL on the date of the agreement and if drawdown of the loan obtained by the Joint Venture in whole is achieved prior to the completion date, the balance of consideration shall be paid by a cashier’s order drawn from a licensed bank in Hong Kong and made payable to DVL at completion. The alternative is that if drawdown of the loan obtained by the Joint Venture in whole is not achieved prior to the Completion Date, the Balance of Consideration shall be paid to DVL a sum of CNY 17.6 million shall be paid by way of a cashier’s order drawn from a licensed bank in Hong Kong and the balance sum of approximately CNY 48 million to be satisfied by the Promissory Notes issued on the Completion Date. The consideration will be funded from external borrowings or other means of fund raising (including fund raising from capital markets). For the year ended March 31, 2016, Huasheng International reported net profit after tax of HKD 6.12 million. The transaction is subject to shareholders approval of Deson Development International Holdings, all necessary regulatory approvals, registrations, filings, regulatory, approval by board of Hoverjet and third party consents required. The shareholder meeting will held on November 10, 2016. The Board of Directors of Deson Development International Holdings Ltd. considers the deal as fair and reasonable and recommends the shareholders to vote in favor. On November 10, 2016, the deal was approved by the shareholders. The deal is expected to close on January 5, 2017. The net proceeds from the sale will be applied for investment and capital expenditure and as general working capital of Deson Development. Peak Vision Appraisals Limited acted as independent professional property valuer. Hoverjet Limited completed the acquisition of Huasheng International Property Development (Shanghai) Co., Ltd. from Deson Development International Holdings Ltd. (SEHK:262) on January 15, 2018.